Use of Merger and Acquisition Approach to Improve the Productivity of Taiwanese Laptop Manufacturers: An Empirical Study

This study examines the efficiency of 12 Taiwanese laptop manufacturers in 2002. This work demonstrates the feasibility of adopting Data Envelopment Analysis (DEA) to identify individual manufacturing firms that are less efficient than other ones. Efficiency is measured in terms of output variables relative to input variables. For those efficient laptop manufacturers lacking of productivity, they can use DEA Approach as an assistant tool to choose candidates for merger or acquisition. The researcher has developed a general framework for combining Merger & Acquisition (M&A) Approach with DEA Approach. Empirical results indicate that superior insights can be obtained by analyzing simultaneously operation and profitability, then the useful information for merger or acquisition activity can be obtained from analyzing hypothetical Decision Making Units’ (DMUs) efficiency. The researcher believe that such computations hold the potential of becoming a useful tool assisting resource analyst and mergers in their routine evaluation of the performance of corporations and industries. Keywords-Merger & Acquisition Approach; Laptop Manufacturers; Data Envelopment Analysis (DEA)